DALLAS — Progress Rail has sold its rail maintenance-of-way equipment leasing company to affiliates of Paceline Equity Partners, Paceline announced Thursday.
Paceline is a Dallas-based private equity manager with investments in assets, corporate debt, and private equity. Progress Rail Equipment Leasing Corp., headquartered in the Detroit area, provides equipment for maintenance work including tie replacement, ballast care, rail grinding and resurfacing, switch work, and bridge inspection and testing.
In a press release, Paceline CEO Sam Loughlin said the acquisition “represents an ideal opportunity for Paceline to invest in an asset-rich operating platform with strong and stable cash flow.” John Newman, executive vice president of infrastructure for Progress Rail, said the sale would allow Progress Reail “to be more efficient in the near term and more competitive long-term. While we are exiting the [maintenance-of-way] equipment leasing business, Progress Rail will continue to produce Kershaw MOW and vegetation management equipment.”
Hmmm…. So Progress Rail has been struggling lately with locomotive design under Tier 4. The F125 has so far largely been a flop with early teething issues, though it seems those are getting resolved, but still, Metrolink has been the only buyer. The SD70ACET4 hasn’t faired much better. So, sad as it would be, is Caterpillar starting a Sears like piecemeal sale of the company? EMD as a company has already fallen under the Progress Rail banner of Caterpillar, but is it about to completely disappear?